K Corp. had reported the following details for the year ended December 31, 2025:

Net sales	$25,050,000
Total assets	17,900,000
Total liabilities	10,800,000

The company's beginning total assets and liabilities were $14,700,000 and $8,900,000, respectively.

1. Calculate the asset turnover ratio for 2025. (Round your answer to two decimal places.)

2. Interpret the asset turnover ratio calculated in part 1.